Is there a statute of limitations on when a construction defect lawsuit can be filed?

In California, the majority of construction defect cases are covered by one or two statutes of limitation. One statute requires the property owner to file a suit within ten years from the time of substantial completion of the home. Under the other statute, within the ten-year period of time, the property owner must file suit within three years from the first time the defect was discovered, or should have been discovered. Most courts provide some leniency as to when "discovery" of a defect occurs. Generally, the courts say that the defect must be of such a magnitude that a reasonable person would have or should have discovered it. However, surveys of homeowners' complaints, correspondence with the builder, and experts' reports may indicate that a defect has been discovered. Because construction defect suits are affected by these statutes of limitations, once a defect is discovered, prompt action must be taken in order to best protect against the complaint being forever barred from a lawsuit filing. Beginning January 1, 2003, California laws pertaining to construction defect litigation dramatically changed. These changes affect only new homes built and sold after January 1, 2003, and not homes built before the new laws went into effect. There are now specific time limitations for patent defects such as:

• 1 year for irrigation systems and drainage, noise transmission into adjoining/attached units and "fit and finish" items (cabinets, countertops, flooring, mirrors, interior and exterior walls, paint finishes and trim)
• 2 years for dryer ducts, untreated wood posts and landscaping systems
• 4 years for electrical, hardscape, plumbing, sewer, and untreated steel fences
• 5 years for exterior finishes (paints and stains)

We take into consideration the time sensitivity of construction cases and work towards a rapid solution, whether through Mediation, Arbitration, Litigation or Negotiation.